The report notes that India generates around 7.25 million tonnes of textile waste annually, but a significant share remains underutilised due to fragmented collection systems, lack of standardised sorting and limited recycling capacity.

It estimates that nearly $9.4 billion (₹78,500 crore) of value is currently unrealised, largely due to inefficiencies across collection, sorting and recycling. Importantly, about 85% of this value lies in reuse pathways, which remain underdeveloped.

The report highlights that post-consumer textile waste systems are highly fragmented, with nearly 45% of waste not entering recovery pathways and instead being diverted to landfill or incineration.

A key bottleneck identified is sorting, described as the “value gate” of the textile waste ecosystem. However, over 95% of sorting in India is manual, with limited technology adoption and absence of a standardised grading framework.

The report also notes policy and infrastructure gaps, including the absence of a dedicated Extended Producer Responsibility (EPR) framework for textiles, weak source segregation and inadequate traceability mechanisms.

On recycling, India’s ecosystem is dominated by mechanical processes, with limited chemical recycling capacity, constraining the ability to handle blended fabrics and scale circularity.

 To unlock the opportunity, the FICCI–RECEIC report recommends:
– A national EPR framework for textiles
– Investment in collection and sorting infrastructure
– Standardised grading and traceability systems
– Integration of informal sector workers
– Expansion of recycling capacity

While circular materials can significantly enhance supply chain resilience and reduce dependence on virgin resources, achieving this will require coordinated action across policy, industry, and infrastructure, the report noted.

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